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The latest law which will impact tourism businesses in Wales has been published. The process for a visitor levy – commonly known as a tourism tax – to become law has already been completed and it will be up to Wales' 22 councils to consult with residents about whether they want to introduce that. Under that legislation anyone who charges visitors for overnight stays must register by law regardless of whether their local council introduces the levy. This is required for all visitor accommodation and registration is separate from the potential introduction of the levy, which could begin in April 2027 But this latest law is different and is about properties having to be licensed. This law, which is starting its journey through the Welsh Parliament on Tuesday, says providers of holiday accommodation will need a licence and meet a set of standards showing that the accommodation is fit for visitors. The estimate is that it would cost a provider £75 a year to get the licence. It will cover self-contained self-catering accommodation like holiday cottages and flats and providers will need to meet a "fitness for visitor accommodation" standard to get a licence by showing they have gas and electrical safety certificates and insurance along with smoke and carbon monoxide alarms. The bill, for now, covers "accommodation in whole houses and flats and in any other self-contained accommodation such as lodges or chalets with the kinds of facilities for washing, cooking, and sleeping which reflect the Visit Wales categorisation of self-catering accommodation and other similar accommodation". However it says things like spare rooms let out in someone’s property, hotel rooms with self-catering facilities, hostels and bunkhouses, and caravans on sites subject to the existing site licensing scheme could be added at a later date. Those who don't comply will be committing a criminal offence and could receive a fixed penalty notice. No sum has been set and the Welsh Government says it will pursue an education approach rather than immediate punishment. It says prosecution would only be expected to be necessary in "very few cases". The documents published as part of this bill say the law aims to ensure that however someone is providing this sort of accommodation they are meeting the standards we and visitors would expect in the same way as a more traditional visitor accommodation business. The explanatory memorandum also says in future the licensing requirement could be extended. Tourism plays a vital role in Wales’ economy, accounting for 159,000 (11%) of jobs. There were more than 69m visits to Wales in 2023 representing a combined spend of more than £4.95bn in the Welsh economy. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here . But the documentation says the provision of visitor accommodation has changed significantly since the Airbnb came to the UK in 2009 and the participation of other sites such as Booking.com, Vrbo, and Expedia in the same market. By May 2022 there were 21,718 properties in Wales listed on Airbnb alone. There is, the documents say, anecdotal evidence that there is inconsistent compliance with standards depending on the property. Wales' finance secretary Mark Drakeford said: "Visitors are at the heart of this bill. "By reassuring them that visitor accommodation in Wales meets the standards they would expect we can build confidence in the industry and support our vital tourism sector even further. "Many businesses already do the right things. "By requiring all businesses to show they meet the same standards we're creating fair competition that protects both visitors and responsible businesses."
